Durban - The eThekwini council is digging in its heels over the future of the disputed 10ha piece of fallow land in Umhlanga that Hawaan Investments has plans to develop as part of its R250 million housing estate.
The fallow land forms part of a 64ha site acquired by Hawaan Investments from the Durban Country Club for R22.5 million.
Pat Naicker, Hawaan's director, aims to build a low-density residential estate comprising 201 units on 25ha of land adjoining Umhlanga's Hawaan Forest.
Planned to sell at an entry level of R2 million, the units would realise a minimum of R402 million. The development has attracted opposition from the council and environmental groups, resulting in an extension of the Development Facilitation Act tribunal hearing.
Initially scheduled from September 29 to October 1, the hearing has had to be extended for a further two days this week.
Mike Sutcliffe, the city manager, said the council had objected because the land had been earmarked to be restored as forest in terms of the city's Integrated Development Plan before the site was bought by Hawaan Investments.
"The terms were public knowledge and were the reason why Tongaat Hulett did not buy the property," he said.
But Naicker said no mention had been made of this in dealings with the council's department of environmental affairs. She claimed the Tongaat-Hulett Group had been unable to match Hawaan Investments' offer. This was confirmed by the Durban Country Club.
Formerly a sugar plantation, the land has lain fallow for the past 10 years and Naicker claimed it could take decades to restore the forest.
"It would cost at least R250 000 a year just to maintain the developer's part of the forest at optimum capacity."
Hawaan Investments plans to channel R100 a month from each unit's levy into a conservation trust. In this way, the 201 units would create an income stream of R241 000 a year.